The Zakat, Tax and Customs Authority (ZATCA) has outlined the criteria for selecting taxpayers in the Sixteenth Wave of the "Integration Phase" for E-invoicing. This phase targets all taxpayers whose VAT-related revenues exceeded SAR 3 million in 2022 or 2023. ZATCA will notify these taxpayers about the need to integrate their E-invoicing systems with the Fatoora Platform, effective April 1, 2025.
ZATCA emphasized that Phase Two (Integration Phase) will involve more stringent requirements than Phase One (Generation Phase). Key differences include the necessity for taxpayers to integrate their E-invoicing solutions with ZATCA's Fatoora platform, generate E-invoices in a specified format, and include additional fields in the invoices. The Integration Phase will be implemented gradually through several waves, with ZATCA notifying taxpayers at least six months in advance of each subsequent Integration Date.
The launch of Phase Two is part of the Kingdom's broader economic development and digital transformation efforts, building on the successes of Phase One, which began on December 4, 2021. Phase One required taxpayers to cease the use of handwritten or manually created invoices, ensuring they have a compliant E-invoicing solution. It mandated the generation and storage of E-invoices with specific fields, including a QR code, among other requirements. ZATCA commended the strong awareness and prompt compliance of taxpayers during Phase One.
